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Taxes and Quantity Constraints in a Model of Male Labour Supply in Sweden
Author(s) -
Aronsson Thomas,
Karlsson Niklas
Publication year - 1997
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/1467-9914.00034
Subject(s) - rationing , economics , labour supply , work (physics) , estimation , labour economics , sensitivity (control systems) , work hours , wage , econometrics , microeconomics , working hours , engineering , mechanical engineering , health care , management , electronic engineering , economic growth
The purpose of this study is to estimate a model of male labour supply, when agents may be subject to quantity constraints. As the data contain direct information about hours constraints, this information is used in the estimation. We also quantify the importance of such rationing for the response in the hours of work to changes in wages, income and the tax system. As it turns out, quantity constraints appear only to slightly reduce the sensitivity of the average hours of work to changes in the economic environment.